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TheStreet Open House

Sourcefire Announces Record Revenue For Fourth Quarter & Full Year 2011

Stock quotes in this article: FIRE

Sourcefire, Inc. (Nasdaq:FIRE):

Fourth Quarter 2011:

  • Revenue: $53.2 million, an increase of 40% year-over-year
  • Adjusted Net Income: $7.6 million, or $0.25 per diluted share

Full Year 2011:

  • Revenue: $165.6 million, an increase of 27% year-over-year
  • Adjusted Net Income: $16.8 million, or $0.57 per diluted share

Sourcefire, Inc. (Nasdaq:FIRE), a leader in intelligent cybersecurity solutions, today announced financial results for its fiscal fourth quarter and full year ended December 31, 2011.

"The investments we have made in our expanded product offering and go-to-market strategy drove record quarterly and full year revenue and adjusted net income,” said John Burris, CEO of Sourcefire. “As we look to 2012, we enter the year with an unmatched set of solutions, a cohesive message based on our Agile Security TM vision and a highly efficient direct and indirect sales force who are excited to go to market with our offerings. We will continue to invest in all areas of the business in order to drive innovation and take market share across our expanded opportunity.”

Financial Summary

  • Total Revenue - Revenue for the fourth quarter of 2011 was $53.2 million compared to $38.0 million in the fourth quarter of 2010, an increase of 40%. Revenue for the year ended December 31, 2011 was $165.6 million compared to $130.6 million for 2010, an increase of 27%.
  • GAAP Net Income - Net income was $4.1 million for the fourth quarter of 2011, or $0.14 per diluted share, on the basis of generally accepted accounting principles (GAAP), compared with GAAP net income of $4.4 million, or $0.15 per diluted share, in the fourth quarter of 2010. GAAP net income for the year ended December 31, 2011 was $6.2 million, or $0.21 per diluted share, compared with GAAP net income of $20.0 million, or $0.69 per diluted share, for 2010.
  • Adjusted Net Income - Adjusted net income for the fourth quarter of 2011, which excludes stock-based compensation expense and costs related to the Immunet acquisition and includes an assumed tax rate of 35%, was $7.6 million, or $0.25 per diluted share. This compares to adjusted net income of $5.0 million, or $0.17 per diluted share, in the fourth quarter of 2010, which excludes stock-based compensation expense and costs related to the Immunet acquisition and includes an assumed tax rate of 35%. Adjusted net income for the year ended December 31, 2011, which excludes stock-based compensation expense and costs related to the Immunet acquisition and includes an assumed tax rate of 35%, was $16.8 million, or $0.57 per diluted share. This compares to adjusted net income for 2010, which excludes stock-based compensation expense, costs related to the Immunet acquisition and the benefit from the release of the valuation allowance on the Company’s deferred tax asset and includes an assumed tax rate of 35%, of $15.4 million, or $0.53 per diluted share.
  • Balance Sheet - As of December 31, 2011, the Company’s cash, cash equivalents and investments totaled $157.8 million. The Company generated free cash flow of $12.9 million in the fourth quarter of 2011 and $8.1 million for the full year 2011.

Recent Company Highlights

Global Expansion & Channel Development

  • Increased 2011 channel-influenced sales worldwide to 51%, up from 39% in 2010.
  • Increased 2011 U.S. commercial revenue to $88.5 million, up 36% over 2010.
  • Increased 2011 international revenue to $42.1 million, up 28% over 2010.
  • Increased 2011 U.S. federal sector revenue to $35.0 million, up 7% over 2010.

Innovation & Recognition

  • Announced its latest innovation, the Sourcefire Next-Generation Firewall (NGFW). Building on Sourcefire's Next-Generation IPS (NGIPS) technology leadership and leveraging its high-performance FirePOWER(TM) platform, the Sourcefire Next-Generation Firewall combines the world's most powerful IPS threat prevention, integrated application control and firewall capabilities in a high-performance security appliance. By combining NGIPS and NGFW, Sourcefire has created the first enterprise firewall solution with comprehensive enterprise visibility, adaptive security and advanced threat protection
  • Introduced FireAMP™ advanced malware protection, a malware discovery and analysis solution that analyzes and blocks malware by utilizing big data analytics. Designed for large enterprises, FireAMP delivers unprecedented visibility and the control needed to block threats missed by other security layers. FireAMP is the latest fulfillment of Sourcefire’s Agile Security vision for context-aware, adaptive and automated security solutions.
  • Announced that Sourcefire has been named to the Deloitte Technology Fast 500 TM for the fifth consecutive year. The Deloitte Fast 500 program lists the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America based on their percentage revenue growth over a five-year period. Sourcefire ranked 402.

First Quarter 2012 Outlook

Based on information as of February 21, 2012, Sourcefire expects revenue for the first quarter of 2012 in the range of $40.0 million to $42.0 million, net loss per share in the range of ($0.05) to ($0.03) and, on an adjusted basis, net income per diluted share in the range of $0.06 to $0.08. Sourcefire's expectation of adjusted net income per diluted share excludes stock-based compensation expense of $4.2 million to $4.4 million and amortization of acquired intangible assets and other acquisition-related expenses of approximately $1.0 million and includes an assumed 35% tax rate.

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